corporate personality

Corporate personality refers to the legal recognition of a corporation as a separate entity from its owners or shareholders. This means that the company can own property, enter into contracts, sue, and be sued in its own name. This separation protects individual owners from personal liability for the company's debts and obligations, fostering business growth and stability. Essentially, the corporation has its own legal identity, distinct from the people who run or own it, enabling it to operate independently within the legal system.